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Where does the human lie in crowdfunding: An exploration of the dark side of social mechanisms

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  • Mathieu-Claude Chaboud
  • Guillaume Biot-Paquerot
  • Alexandre Pourchet

Abstract

Crowdfunding is often considered to be a more prosocial than traditional means of financing. In order to analyze and validate this assumption, we explore the social mechanisms of reward-based crowdfunding present in four illustrative campaigns. We propose a typology of the tools, mechanisms, and organizational methods used in these fundraising initiatives and show how entrepreneurs can use a combination of rules, communication, and the stated philosophy or purpose of their venture not only to succeed but also sometimes to engage in free-riding behavior.

Suggested Citation

  • Mathieu-Claude Chaboud & Guillaume Biot-Paquerot & Alexandre Pourchet, 2021. "Where does the human lie in crowdfunding: An exploration of the dark side of social mechanisms," Entreprendre & innover, De Boeck Université, vol. 0(1), pages 84-93.
    • Handle: RePEc:cai:entdbu:entin_048_0084
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